1. Direct Observation
Direct Observation – visits and direct observations can have positive effects when
viewed by the workers as a display of the superior’s interest.
2. Audits
Audits can be conducted either by internal or external personnel. External
audits are normally done by outside accounts and are limited to financial matters. Most
are to be done to certify that the organization’s accounting methods are fair,
consistent, and conform to existing practices. The internal audit, similar to the external
audit, is performed by the organization’s own personnel.
Break-Even Charts
deficit graphically the relationship of volume of operations to profits. The
break-even point (BEP) is the point at which sales revenues exactly equal expenses.
Total sales below the BEP results in a loss; total sales above the BEP results in a profit. (
Figure 7.3)
Time Related Charts and Techniques
Gantt charts, the critical path method (CPM), and the program evaluation
review technique (PERT) are tools used to plan and schedule. These same tools can
also be used for controlling once the plans have been put into action. By tracking actual
progress compared to planned progress, activities that fall behind schedule can quickly
be spotted.
Control Methods and Systems
3. Total Sales
40 –
Break-Even Charts
( fig. 7.3) Total Cost
30-
20-
Total Fixed Cost
10-
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Control Methods and Systems
